Two federal district courts issued temporary injunctions against Treasury‑Education Department regulations that would have narrowed Public Service Loan Forgiveness eligibility and capped graduate‑student borrowing. The rulings were handed down on June 30, 2026, preserving existing forgiveness pathways while litigation continues.

Federal courts in Washington, D.C., and Maryland issued temporary injunctions on June 30, 2026, preventing enforcement of two Trump administration regulations that sought to restrict the Public Service Loan Forgiveness (PSLF) program and to impose new borrowing caps on certain graduate students [1][2]. The orders were entered by U.S. District Judge Beryl Howell in the District of Columbia and by Judge James Boasberg in the Eastern District of Maryland, halting the rules before they could take effect [1][4].

The regulations were promulgated by the U.S. Department of Education under the Trump administration, aiming to tighten eligibility criteria for PSLF and to limit federal loan amounts for graduate students in specific fields of study [2][3]. Plaintiffs, including public‑service employees, nonprofit organizations, and graduate‑student advocacy groups, challenged the rules in federal court, arguing that the agency exceeded its statutory authority and failed to follow required notice‑and‑comment procedures [1][3]. The judges granted summary‑judgment motions that found the agency’s actions likely unlawful, issuing stays that keep the prior PSLF rules and existing graduate‑loan limits in place while the cases proceed [1][4].

Court Decisions and Legal Context

U.S. District Judge Beryl Howell issued a nationwide preliminary injunction on June 30, 2026, blocking the rule that would have limited the number of qualifying payments for PSLF and narrowed the definition of qualifying employment [1]. In a separate decision, Judge James Boasberg granted a temporary restraining order against the graduate‑student borrowing caps, citing procedural deficiencies in the rulemaking process [4]. Both rulings emphasized that the Department of Education must adhere to the Higher Education Act and the Administrative Procedure Act when altering loan programs [2][3].

The injunctions are limited in scope and remain in effect pending further briefing and a final judgment. The courts have not ruled on the merits of the administration’s authority but have required the department to maintain the status quo until the litigation is resolved [1][4]. The Department of Education announced that it will appeal the decisions and continue to defend the regulations in the ongoing proceedings [2].

Details of the Blocked Rules

The PSLF rule slated for implementation in early July 2026 would have reduced the number of qualifying payments from 120 to 100 and excluded certain public‑service positions from eligibility, according to the Department’s proposal released in March 2026 [2]. The regulation also introduced a new “employment verification” requirement that critics said would create administrative burdens for borrowers [1].

The Department of Education announced that it will appeal the decisions and continue to defend the regulations in the ongoing proceedings [2].

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The graduate‑student rule, issued on May 15, 2026, proposed capping federal loan amounts for students pursuing degrees in fields deemed “high‑earning,” such as business and engineering, at $30,000, down from the existing $57,500 cap for those programs [3]. The rule further required schools to certify that students could repay the reduced loan amounts based on projected earnings, a provision the plaintiffs argued exceeded the department’s statutory mandate [3].

Both regulations were scheduled to become effective on July 1, 2026, but the injunctions froze them pending judicial review, leaving the prior PSLF framework and graduate‑loan limits unchanged [1][4].

Immediate Impact on Borrowers

The injunctions preserve current eligibility for PSLF, allowing public‑service employees who have made 120 qualifying payments to continue pursuing loan forgiveness under the existing program [2]. Borrowers who were preparing to adjust their repayment strategies in anticipation of the new rules can maintain their current payment plans without interruption [1].

Graduate students in the affected fields of study retain access to the pre‑rule borrowing limits, meaning they may continue to receive federal loans up to the prior caps of $57,500 for eligible programs [3]. Financial aid offices at universities have been instructed to continue processing aid applications under the existing guidelines while the legal challenge proceeds [4].

The rulings provide short‑term certainty for borrowers but indicate that the final outcome will depend on the courts’ ultimate determination of the department’s authority. Stakeholders, including public‑service agencies and graduate‑school administrators, have been advised to monitor the case docket for further orders that could affect loan‑repayment counseling and financial‑aid planning [2].

Next Steps and Potential Outcomes Federal Judges Temporarily Block Trump Administration Rules Limiting Student Loan Forgiveness The Department of Education has filed notices of appeal with the U.S.

Next Steps and Potential Outcomes

The Department of Education has filed notices of appeal with the U.S. Court of Appeals for the District of Columbia Circuit, seeking reversal of the preliminary injunctions [2]. The appellate courts are expected to schedule briefing and oral arguments within the next several months, after which a definitive ruling on the regulations’ legality may be issued [4].

If the appeals are successful, the new PSLF and graduate‑student rules could take effect as originally scheduled, altering eligibility criteria and borrowing limits for thousands of borrowers [1][3]. Conversely, if the injunctions are upheld, the department may need to revise its proposals to address the procedural and statutory concerns identified by the district courts [2].

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For now, borrowers, educational institutions, and public‑service employers should continue to operate under the existing loan‑forgiveness and borrowing frameworks while the litigation proceeds [4].

Key Facts

What: Federal judges issued temporary injunctions blocking Trump administration rules that would have limited PSLF eligibility and capped graduate‑student borrowing.

What: Federal judges issued temporary injunctions blocking Trump administration rules that would have limited PSLF eligibility and capped graduate‑student borrowing.

When: June 30, 2026.

Impact: Existing loan‑forgiveness eligibility and graduate‑loan limits remain in place for borrowers and institutions.

Sources

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• US Judges Block Trump’s Limits on Student Loan Forgiveness Program – US News
• Judges Strike Down Trump Rule on Loan Forgiveness for Public Servants – The New York Times
• Judge blocks Trump’s rule limiting student loans for grad students – CNBC
• Judges strike down Trump administration’s overhaul of student loan forgiveness program – Associated Press (Click2Houston)